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Cramer's 'Mad Money' Recap: Google's World

Scott Rutt

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"It's time to buy Google (GOOG Quote)," Jim Cramer told viewers on a shortened, midday episode of his "Mad Money" TV show Wednesday. He called the company a steal at its current $500 price point.

In a special guest appearance, Cramer talked with Google Chairman and CEO Eric Schmidt, to learn more about the company whose stock has risen more than 700% since its IPO.

Schmidt said that Google has no plans to split its stock, and he feels part of a company's value should be reflected in its stock price. He defended the company's policy of not providing earnings guidance by stating that he will not let Wall Street get in the way of running the company's business.

On a philosophical level, Schmidt dismissed the notion that Google promotes "intellectual laziness." He said that people get smarter by having access to information and that Google simply organizes that information in the best possible way. He touted knowing how to search as one of the most important skills for children to learn in today's world.

Regarding the company's business, Schmidt said he feels international sales could eventually surpass domestic sales and potentially account for up to 60% of the company's business. He also said that mobile computing could eventually surpass domestic computing in importance due to its personal, targeted nature.

Pressed by Cramer about a possible slowdown in the company's growth because of its huge size, Schmidt responded by saying that all companies eventual suffer from the laws of large numbers and can't simply keep growing exponentially. He said that at Google, the company is solving this problem by continually creating new businesses to keep growth alive.

Schmidt also defended his company when asked about potential anti-trust concerns by saying that Google can be big without being evil. He explained that Google does not trap its users into a single way of doing things and always ensures there's a competitive marketplace.

Finally, Schmidt said that Google has not yet determined the best model for advertising on its YouTube video sharing site, but is working to monetize the property. Likewise, he offered little guidance on the company's upcoming Android mobile operating system, saying only that it will be released before year's end.

Outrage of the Day

In this segment, Cramer took aim at the Securities and Exchange Commission for its decision to rescind its ban on the naked shorting of the bank stocks.

Cramer said without this rule, we will likely see continued pressure on these stocks and the possibility of additional bank failures. He again advocated extending the ban on naked shorting to all stocks.

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